Oil Prices Creep Up Amid Concerns in Egypt
The price of crude oil rose again recently following concerns that embattled Egypt President Hosni Mubarak won't resign his office.
Protestors have besieged Egypt's major cities for the past few weeks calling for an end to the leader's 30-year reign. Mubarak took over the presidency after Anwar Sadat was assassinated in 1981.
Futures rose 1.2 percent after Mubarak insisted that he will stay in office until the September elections, according to Bloomberg News. Higher crude futures means higher prices at the gas pump for drivers. The cost of futures hit a 2-year high, as gasoline prices inched above $3.10 per gallon in most states, according AAA's daily Fuel Gauge Report.
Crude oil's price for the March contract has hovered around $87 a barrel on the New York Mercantile Exchange, which is about 16 percent more than this time last year, Bloomberg reported.
The unrest in Egypt has caused some analysts to wonder if this situation will resemble the oil crisis from 1979 when the Shah of Iran was deposed and Iran cut it's oil production significantly. Egypt is an oil-producing state and OPEC member, but its strategic significance is not the oil it produces. Egypt controls the Suez Canal, which links the Mediterranean and Red seas, and the Suez-Mediterranean Pipeline, and both are key to meeting the West's high demand for petroleum.